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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Michael Brian who wrote (24310)	10/24/1997 7:50:00 AM
From: BillyG	Respond to of 50808

Pioneer to Unveil Third Optical Disk Specification October 24, 1997 (TOKYO) -- Pioneer Electronic Corp. plans to disclose a third specification for a next-generation rewritable optical disk with a large capacity as early as November 1997, according to industry sources. DVD-RAM and Phase-Change Rewritable are the two specifications that already have been proposed. The new specification, tentatively called DVD-ER, has the same track pitch, recording marking length and rotation control method as the DVD-R. The use of phase-change metal materials as its recording layer can make it rewritable. Pioneer, as head of a working group for firming the DVD-R's specs, commercialized DVD-R drives ahead of other companies. Although details of the DVD-ER specification are not known, there is a possibility that the DVD-ER also will be read by first-generation DVD-ROM drives, just as the DVD-R can be read by current DVD-ROM drives. Its capacity is likely to be 3.95GB, which is the same as that of the DVD-R. There also is a possibility that its capacity will be 4.7GB, the same as the DVD-ROM's. Only grooves are used as its recording method, and address information is marked on its land by pits. Users use pit addresses on the land only at the time of writing data, and do not have to look at them at the time of reading it. The price of its drives is expected to be high for a laser, with a wavelength of 635nm to be used to write data. Related stories: Pioneer Starts Manufacture of DVD-R Drive Pioneer to Introduce DVD-R Drive Product DVD Forum to Firm Up 4.7GB DVD-R Standard Sony, Philips Propose Rewritable DVD Format (Nikkei Byte)

To: Michael Brian who wrote (24310)	10/24/1997 10:26:00 AM
From: JPM	Read Replies (2) \| Respond to of 50808

"Isn't China a big market for Cube? Can anyone tell me if this Hong Kong crisis can affect the economy in China and therefore the markets for Cube?" Michael, I was thinking about this yesterday... first, the HK crisis will probably not affect china all that much, but lets assume it will. Let's assume there's an economic slowdown in China ans South East Asia too. Given the weakening currency of Taiwan, CUBE manufacturing costs should drop (In dollar terms.) Now the issue is whether CUBE can continue selling their chips to VCD player manufacturers. If the economy goes into a blown out depression (highly unlikely), I would assume CUBE's business would not do too well. However, the likelihood of this happening is minimal. I say this because HK still has a pegged currency and they have not fallen into a deep recession as did Mexico in 1994. Now, lets assume a scenario where China's economy slows down a bit due to Hong Kong. From what I gather, VCD's are like fresh air in China, and assuming less disposeable income during the Chinese New Year, I am tempted to believe that Chinese are more likely to spend $120 on a VCD player for the new year than $300 on a new Tv or some other more expensive item. This is quite positive for CUBE then I believe. Finally, if China is unaffected, growth will continue as planned. Not sure whether scenario 2 or 3 would be better for CUBE. Jp